AG revamps public offering of real estate

By: David Winzelberg January 30, 2012Comments Off on AG revamps public offering of real estate

New York Attorney General Eric Schneiderman announced a new policy Monday to help streamline the public offering of residences in cooperatives, condominiums, homeowners associations and timeshares, according to a statement.

The policy, effective on April 1, will require developers to give prospective purchasers the option of receiving plans in a searchable digital format. It’s part of Schneiderman’s initiative to modernize the AG’s office real estate oversight functions and facilitate transactions in the market.

An offering plan is a prospectus that must be filed with the AG’s office describing the details of the sale of cooperative interests in real estate, such as co-ops, condos, homeowners associations and timeshares. Before this Cooperative Policy Statement 10, offering plans could only be distributed in voluminous hard copies. The new policy is designed to facilitate dealings between developers and purchasers, while also reducing the impact on the environment.

Additionally, purchasers and their attorneys will be able to search documents for relevant terms rather than through printed books. Prospective purchasers who prefer to receive hard copies will still be able to request them from developers.

“By allowing the distribution of offering plans in a digital format, we are increasing efficiencies in real estate transactions in a way that is beneficial for both developers and prospective purchasers. It’s a win-win,” Schneiderman said in the statement. “This new policy is part of our comprehensive plan to bring residential real estate transactions in New York into the 21st century.”